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What are the Best Practices of MWBEs Looking to Do Subcontracting Work?


If you’re a minority or woman-owned small business and are looking to get into the world of government contracts, a great gateway can be to maneuver your way into subcontracting.

New York State has recently announced an ambitious Infrastructure Plan that looks to offer an incredible opportunity to MWBEs of all shapes and sizes. We’re talking about capital spending that exceeds $150 billion over five years! This means that there are millions of dollars on the table for businesses just like yours. You only need to know how to connect with companies that are looking to develop subcontracting partnerships.

With New York’s aggressive MWBE participation goals that aims to award 30% of all contract spending to minority and women-owned firms, subcontracting s is an amazing opportunity for certified MWBES.    With that said, what I have found is that MWBEs often struggle with how to turn subcontracting goals into meaningful opportunities for their businesses.   Like anything else, to  land subcontracting opportunities you need a strategy:

Here are some of the best practices for MWBEs looking to land more subcontracting contracts:

Identify Projects that Could be a Good Fit

You need to know exactly what your small business’ capabilities are if you’re going to start reaching out to land subcontracting projects.

Take a look at your core company, core competencies, and capacity, then consider how a relationship might work where you add your strength to that of another company. By being strategic about how you could work with another company, you will be able to better target businesses and contacts that are compatible with your own. This will help you better see how you can combine your strengths to create a formidable presentation.

Develop Relationships

There is so much that you should do before you start exchanging quotes with a business. If you want to work with a company, you should start by developing a relationship with them.

I suggest several meetings where you talk about things like your respective core values, mission, reputation, and expectations. Once you come to an understanding that there is a good fit between your two companies, then it’s time to exchange non-disclosure agreements, not before.

Do a Background Check

Just because you get along well with an organization doesn’t mean that you shouldn’t do your homework.

Before you sign on the dotted line, always do a background check on the other business (or whatever is appropriate in your industry). This is to confirm your good feelings about the company. It’s just common sense to make sure that the things they told you are, in fact, true!

Contribute Throughout the Bidding Process

Once you’ve come to a subcontracting agreement, the bidding process is entirely up to the prime contractor, right? Wrong.

I suggest that once you identify a project that is a good fit, you also contribute throughout the bidding process. This means reviewing RFPs and solicitation documents in detail, helping to the best of your ability.

All of the terms that you agree to with the prime contractor should be in writing before the bid is submitted. This is often called a Teaming Agreement, or a letter of intent. It should clearly speak to what your responsibilities will be if a contract is awarded.

Negotiate Terms

Some people wrongly think that the prime is always in the driver’s seat. Personally, I think this is why you need to build a relationship with the prime contractor. You aren’t merely in the passenger seat; you’re a partner in this endeavor.

I see building these kinds of relationships more as an opportunity to come to terms that are favorable to everyone. Even if you are working on landing your very first subcontracting job, don’t just accept a “take it or leave it” offer. Instead, try negotiating terms.

I realize that this is a lot to keep straight and there is much more I can say on the subject of subcontracting. That’s why, on November 13th, we are holding a completely free Subcontracting for Professional and Standard Services workshop at the NYC Department of Small Business Services from 10:00 AM to 12:00 PM. There, I will go into further details about all the things that you need to know. These workshops tend to fill up very quickly, so sign up as soon as you can!

With all of the incredible opportunities on the horizon, it’s time to start growing your small business through subcontracting!





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